Bitcoin Whales Dump 20,000 BTC
On September 25, 2024, a well-known crypto analyst shared alarming news on X (formerly Twitter) about Bitcoin whales selling over 20,000 BTC, valued at approximately $1.28 billion, within the past 24 hours. This massive sell-off happened near a significant resistance level of $64,800, a price point known for historical reversals and selling pressure. Notably, this is the second time Bitcoin has approached this level since August 2024. During its last encounter with this resistance, Bitcoin experienced a sharp decline of over 16%. Consequently, traders and investors are now speculating whether a similar price reversal is imminent.
BTC Current Price Momentum
At the time of writing, Bitcoin is trading near the $63,720 mark, experiencing a price increase of over 1.35% in the past 24 hours. Alongside this price surge, Bitcoin’s trading volume has risen by 6%, indicating heightened participation from traders and investors. This uptick in activity suggests that market participants are closely monitoring Bitcoin for potential price movements.
Bitcoin Technical Analysis and Key Levels
Expert technical analysis indicates a bearish outlook for Bitcoin, primarily due to the recent $1.28 billion asset dump and the appearance of a bearish double-top price action pattern on the daily chart. In trading and investing, this pattern is often viewed as a bearish signal, suggesting a potential price reversal.
With this pattern forming on the daily time frame, there is a strong possibility that Bitcoin’s price could decline by 10%, potentially reaching the $57,300 level in the coming days. However, this negative forecast will hold unless Bitcoin manages to close a daily candle above the $66,000 level, which could invalidate the bearish pattern and prevent further decline.
BTC’s Negative On-Chain Metrics
The bearish outlook is further corroborated by on-chain metrics. According to Coinglass, the BTC Long/Short ratio currently stands at 0.981, reflecting bearish market sentiment among traders. Moreover, Bitcoin’s future open interest has increased by 1.5% in the past 24 hours, indicating a potential buildup of short positions amid the prevailing bearish sentiment. These metrics suggest that traders are preparing for a possible price decline, aligning with the technical analysis predictions.
